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Life annuity

A life annuity gives you regular benefit payments for the rest of your life – no matter how long you live. With a life annuity, you will have financial security when you retire and for the rest of your life, and your contributions are fully tax deductible.

You can set up a life annuity at any time – regardless of your age. You will receive a benefit payment each month and for as long as you live.

Learn more about life annuity (PDF) (In Danish only)

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Advantages of a life annuity

  • You will have financial security through fixed monthly benefits for as long as you live.
  • There is no limit to the amount of contributions you can make.
  • Your contributions are fully tax deductible against your personal income.
  • You can take out an insurance cover giving you the right to waive contributions (waiver of contribution) if your earning capacity is reduced. This means that your pension savings will continue to grow without you having to make contributions yourself.
  • You have savings balance protection until the payout starts, meaning that your beneficiaries will receive your savings if you die before you start receiving benefits.
  • Your life annuity benefits will be paid out to your beneficiaries for a certain number of years.

Facts

A life annuity gives you benefit payments for as long as you live. The benefit payments continue until you die.

  • Savings balance protection while you are making contributions

    Your beneficiaries are guaranteed your entire amount of savings in the period during which you are saving up and until the date your benefit payments start. This means that your beneficiaries will receive your entire amount of savings.

  • Savings balance protection after your retirement

    When you start receiving life annuity benefits, you can ensure that your beneficiaries are guaranteed your benefits for a certain number of years if you die before a specific date.

  • No contribution limit

    As the only tax-deductible pension scheme, there is no maximum amount you can contribute to your life annuity – either as a personal annuity or through your employer. You can choose to pay a lump sum or make regular contributions. We always recommend that you let your employer manage the contributions if possible, as this is the most flexible method of contribution – especially if you want to change or terminate the contribution agreement at a later date.

  • Personal income

    Contributions to a life annuity are deducible against top-bracket tax. If you cannot utilise the tax deduction yourself, your spouse may do so instead. Your benefits will be subject to income tax, but not to labour market contributions.

  • Waiver of contribution

    You can take out an insurance cover which means that you do not have to make contributions to your pension scheme yourself if your earning capacity is permanently or temporarily reduced to a certain level – due to illness or an accident. This means that your pension savings will continue to grow as if pension contributions were still being made.

  • Prices and conditions

    The expenses on a life annuity depend on

    • how your savings are invested
    • the amount of contributions
    • whether your pension scheme includes insurance covers
    • whether you have a personal or a company pension scheme
    • whether your pension scheme is optional or chosen by your employer

    Who can set up a life annuity?

    Any person aged 18 or over can set up a life annuity. You can start receiving your benefits when you reach your pension payout age (previously early retirement age). Other, more favourable rules may apply to pension schemes set up before 1 May 2007.

    Click here to see prices and conditions

Annuity pension scheme

Maintain your standard of living in retirement with fixed monthly annuity pension benefits.

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Retirement savings scheme

Have your savings paid out as a lump sum – or in smaller portions. It is up to you.

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All payout options

Are you the cautious type or do you chase the highest possible return? Whether you want to invest your savings yourself or prefer to leave it to our experts, we have a solution that suits your needs.

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A lot can happen in a year. Does your pension scheme fit your current life situation?